Thursday, June 19, 2014

Further investigation required

We really were not that surprised to learn that the now
convicted former occupant of the office of Mayor somehow managed to create a“secret” bank account. After all, it fits the mold and methods of a man who used the city treasury as
his own.

The revelation does leave many unanswered questions:

How was it accomplished without the knowledge of or approval from anyone in the
finance department? If the auditor could find it, shouldn’t the checks and
balances in the financial systems have picked it up sooner?

How much money was involved? Is there any left in the account? What was the
money spent on?

Most importantly, will the Mercer County Prosecutor’s Office open a full
investigation into this? Will they bring the matter to a grand jury?

We should not concern ourselves with the fact that Mr. Mack has already been
tried and convicted on Federal Corruption charges. This is about making someone
fully accountable for the wrong they have done…at all levels. It is doubtful that Mr. Mack acted alone in this and anyone else who aided and abetted this deception needs to be charged accordingly. It is also about
showing others that this kind of corruption will not be tolerated…at any level.

The above referenced article also revealed that there have been some issues with personnel
working “out of title” and lack of controls over authorized overtime.

The audit covered the period of SFY2013 (July 1, 2012 – June 30, 2013). The
report is just being made public to the city council. Sam Hutchinson, the city
Business Administrator, admitted there were issues due to the massive layoffs
but that things had been corrected “now.”

State statute 40:69A-44 describes the qualifications, powers and duties of the
Business Administrator.

The department of
administration shall be headed by a director who shall be known and

designated as business
administrator. He shall be chosen solely on the basis of his

executive and
administrative qualifications with special reference to his actual experience

in, or his knowledge
of, accepted practice in respect to the duties of his office as

hereinafter set forth.
At the time of his appointment, he need not be a resident of the

municipality or State,
but during his tenure of office he may reside outside the

municipality only with
the approval of council. He shall have, exercise and discharge the

functions, powers and
duties of the department. The department, under the direction and

supervision of the
mayor shall:

(a) Assist in the
preparation of the budget;

(b) Administer a
centralized purchasing system;

(c) Be responsible for
the development and administration of a sound

personnel system; and

(d) Perform such other
duties as council may prescribe.

(e) The governing body
of the municipality may provide, by ordinance, that

the business
administrator also shall, subject to the direction of the mayor,

supervise the
administration of each of the departments established by ordinance.

For this purpose, he
shall have power to investigate the organization and

operation of any and
all departments, to prescribe standards and rules of

administrative
practice and procedure, and to consult with the heads of the

departments under his
jurisdiction; provided that with respect to any department

of law or department
of audit, accounts or control, the authority of the business

administrator under
this subsection shall extend only to matters of budgeting,

While it is true that Mr. Hutchinson did not come on
board until April of 2012, “the development and administration of a sound
personnel system” is one of the BA’s duties as enumerated in the state statute.
When did Mr. Hutchinson become aware of these issues? How and when did he address them? Was
the governing body made aware of the problems and corrections prior to the
auditor’s report? (It certainly doesn't seem like it from the newspaper account)

In August of 2006 Mercer County Prosecutor Joe Bocchini removed former chief
financial director and comptroller Christine Stankiewicz from city hall amid allegations
of payroll fraud.

Has the prosecutor’s office been notified of the auditor’s recent findings as outlined
above? If not, why not?

We hope and hereby suggest that the Mercer County Prosecutor open a full
investigation into both of the matters outlined in the Mercadien report
immediately.